ID :
186392
Sat, 06/04/2011 - 08:29
Auther :

US unemployment grows to breed political problems for White House


WASHINGTON, June 4 (Itar-Tass) -- The process of economic recovery in
the U.S. has slowed down. A confirmation of this is seen in Friday's
report by the Department of Labor, saying that private sector employment
grew in May by only 83 thousand, while the general unemployment rate rose
to 9.1 percent. The latest indicators are the worst for the last eight
months.
Previously it was assumed that employment would grow by about 170
thousand, and unemployment would drop to 8.9 percent. The Washington Post,
in its pre-emptive comment said that any figure less than 100 thousand
will dispel the persistent optimism to the effect the economy ostensibly
witnesses strong and stable growth. In fact, the new figures mean that the
impact of measures taken in recent years by the U.S. authorities for the
sake of post-crisis encouragement of the economy weakens.
For the White House this is of great political significance, in
addition to the socio-economic aspect. Many political analysts believe
that with unemployment standing at 9 percent and more President Obama will
find it very difficult to get re-elected. The U.S. government in recent
months focused great efforts on creating new jobs, but a turn for the
better is nowhere in sight.
Naturally, the Administration had known the Department of Labor's
estimates well in advance. Obama on Friday started a tour of the country.
It was assumed that in a speech at one of the industrial enterprises in
Ohio he would touch upon economic statistics. But he preferred to keep
quiet about the dismal figures, but mentioned only some headwinds that
impede the development of the American economy. Among such interferences
he singled out the high gasoline prices, economic turmoil after the
natural disaster and technogenic disasters in Japan, as well as
instability in the Middle East.


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